Abstract
This chapter discusses ratio covenants designed to protect the bank’s position should the borrower’s credit-worthiness begin to deteriorate. Ratio covenants are among the most contentious aspects of a loan agreement and many companies resist them fiercely, while many banks argue that they are beneficial to the borrower as well as to the banks.
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© 1982 J. A. Donaldson and T. H. Donaldson
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Donaldson, J.A., Donaldson, T.H. (1982). Ratio Covenants. In: The Medium-Term Loan Market. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-06242-3_7
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DOI: https://doi.org/10.1007/978-1-349-06242-3_7
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-06244-7
Online ISBN: 978-1-349-06242-3
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